USD
The US dollar advanced against most of its peers on Friday, as the surprise rate cut by the Chinese central bank spurred a bit of risk aversion. In addition, data from the US was better than expected since the flash manufacturing PMI climbed from 53.0 to 54.1 instead of falling to the projected 52.8 reading. For today, US new home sales data is due and a drop from 552K to 546K is eyed.

EUR
The euro took a break from its sharp selloff when the PBOC decided to ease monetary policy and ease some of the uncertainties in the global market. PMI readings from the euro zone were also mostly better than expected, with the manufacturing and services data from France beating analysts’ projections. The German Ifo business climate index is due today and a drop from 108.5 to 108.1 is eyed.

GBP
The pound held on to some of its wins despite the lack of top-tier data from the UK, as the reports released earlier in the week spelled positive prospects for the UK economy. Only the BBA mortgage approvals report and CBI industrial order expectations are up for release today.

CHF
The franc continued to drop against its peers, as traders speculated that any easing moves from the ECB would be accompanied by intervention from the SNB. There were no reports out of Switzerland on Friday and none are due today.

JPY
The yen had a mixed performance as it mostly reacted to market sentiment instead of establishing its own direction. The Japanese flash manufacturing PMI came in better than expected at 52.5, up from the previous 51.0 figure. There are no reports due from the Japanese economy today.

Commodity Currencies (AUD, NZD, CAD)
The comdolls initially sold off upon hearing more interest rate cuts from China but recovered strongly, as traders predicted that the easing moves might spur trade activity and boost commodity prices. Canadian CPI readings were weaker than expected, as the headline CPI showed a 0.2% decline while the core reading indicated a slower than expected 0.2% uptick. New Zealand’s trade balance is up for release in the next Asian session, with the deficit expected to narrow.

To contact the reporter of the story: Samuel Rae at samuel@forexminute.com

Samuel Rae is an active retail trader across a variety of assets, including currencies, stocks and commodities and the author of Diary of a Currency Trader (Harriman House). His personal strategy focuses primarily on classical technical charting patterns with a fundamentally supportive bias, combined with a strict, risk management-driven approach to entries and exits. He is an Economics graduate from Manchester University, UK.

Risk Warning: All information on this website, including any opinions, charts, prices, news, data, Buy/Sell signals, research and analysis is provided as general market commentary and does not constitute any investment advice. Forexminute is not liable for any damage or loss, including but not limited to, any loss of investment, which may be based either directly orindirectly on the use of or reliance on such information. Before deciding whether or not to take part in foreign exchange or financial markets or any other type of financial instrument, please carefully consider your investment objectives, level of experience and risk appetite. Do not invest more money than you can afford to lose. Note that the high level of leverage in forex trading may work against you as well as for you. Please seek advice of an independent financial advisor if you are not fully aware about the risks associated with foreign exchange trading. Forex trading on margin involves considerable exposure to high risk, and may not be suitable for all investors. Forexminute does not endorse any companies, products or services which are represented on Forexminute.com The information on this website is subject to change without notice.